104398 Federal Register / Vol. 89, No. 246 / Monday, December 23, 2024 / Rules and Regulations 

proposed rule, inflation has affected 

farming and marketing costs across the 

industry which requires the Board to 

raise the assessment rate to fund 

promotional activities that maintain and 

expand the market for watermelons. 

According to the Board’s FOB and 

movement data, (which is available on 

their website: https://

www.watermelon.org/audiences/ 

industry/assessment/), the demand for 

watermelons has increased significantly 

since the last assessment increase from 

4.3 billion pounds in 2008 to 5.5 billion 

pounds in 2023. The assessment 

increase is structured so importers pay 

nine cents per hundredweight, and 

handlers and producers split the cost 

each remitting four and a half cents per 

hundredweight. This is modeled by the 

current assessment structure of the Plan 

where importers pay six cents per 

hundredweight and handlers and 

procedures each remit three cents per 

hundredweight. The assessment rate 

structure borne on the industry is 

reflective of the production of the 

commodity. Additionally, four 

importers of watermelons left 

supportive comments for the assessment 

increase during the comment period, 

with one stating that the Board’s efforts 

increase demand for watermelons in the 

United States which is evident as the 

number of watermelons imported from 

Mexico continue to grow. 

Another commenter who stated 

opposition to the changes presented in 

the proposed rule voiced concern that 

importers of watermelons may not have 

equitable opportunities to address 

questions or concerns regarding the 

increase or other Board funded 

activities. The commenter asked if 

government officials of exporter 

countries were notified of the proposed 

assessment increase. AMS 

acknowledges this comment and notes 

that the proposed rule was published in 

the Federal Register to provide notice to 

all interested parties, including 

government officials of exporting 

countries, of the proposed 

modifications. The comment period 

provided an opportunity for industry 

members and the public alike to voice 

any concerns they may have with the 

proposed changes to the Plan. As with 

other interested parties, government 

officials had notice and opportunity to 

comment on the proposed assessment 

increase. No government officials 

commented on the proposed rule. 

Additionally, prior to the publication of 

the proposed rule, the Board conducted 

outreach to industry stakeholders, 

including those representing imported 

watermelons. For example, the Board 

presented potential budgetary examples 

with the assessment increase to inform 

stakeholders, including importers, of the 

proposed assessment increase and 

activities that could be funded by the 

Board prior to the publication of the 

proposed rule. The Board presented at 

various state and regional association 

meetings, including the National 

Watermelon Association, which was 

attended by importers of watermelons, 

providing all growers equal opportunity 

to raise questions. In addition, the Board 

currently has nine importers members 

who represent the industry and help 

oversee the Board’s policies and budget. 

AMS and the Board agree that 

transparency and communication to all 

stakeholders is critical, and accordingly, 

the Board notified the industry of the 

potential assessment increase through a 

variety of channels including industrywide newsletters, regional and national 

conventions, and email correspondence. 

AMS received two non-substantive 

comments. One of the unrelated 

comments was focused on pest control, 

and another voiced support for an 

athlete sponsored by the Board. 

Accordingly, no changes were made 

to the rule as proposed, based on the 

comments received. 

After consideration of all relevant 

material presented, including the 

information and recommendations 

submitted by the Board, the comments 

received, and other available 

information, it is hereby found that this 

rule, as hereinafter set forth, is 

consistent with and will effectuate the 

purposes of the Act. 

List of Subjects in 7 CFR Part 1210 

Administrative practice and 

procedure, Advertising, Agricultural 

research, Consumer information, 

Marketing agreements, Reporting and 

recordkeeping requirements, 

Watermelons. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service amends part 1210, chapter XI of 

title 7 of the Code of Federal 

Regulations as follows: 

PART 1210—WATERMELON 

RESEARCH AND PROMOTION PLAN 

■ 1. The authority citation for part 1210 

continues to read as follows: 

Authority: 7 U.S.C. 4901–4916 and 7 

U.S.C. 7401. 

■ 2. Amend § 1210.515 by revising 

paragraphs (a) and (b) to read as follows: 

§ 1210.515 Levy of assessments. 

(a) An assessment of four and a half 

cents per hundredweight shall be levied 

on all watermelons produced for 

ultimate consumption as human food, 

and an assessment of four and a half 

cents per hundredweight shall be levied 

on all watermelons first handled for 

ultimate consumption as human food. 

An assessment of nine cents per 

hundredweight shall be levied on all 

watermelons imported into the United 

States for ultimate consumption as 

human food at the time of entry in the 

United States. 

(b) The import assessment shall be 

uniformly applied to imported 

watermelons that are identified by the 

numbers 0807.11.30 and 0807.11.40 in 

the Harmonized Tariff Schedule of the 

United States or any other number used 

to identify fresh watermelons for 

consumption as human food. The U.S. 

Customs Service and Border Protection 

(Customs) will collect assessments on 

such watermelons at the time of entry 

and will forward such assessment as per 

the agreement between Customs and 

USDA. Any importer or agent who is 

exempt from payment of assessments 

may submit to the Board adequate proof 

of the volume handled by such importer 

for the exemption to be granted. 

* * * * * 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–30268 Filed 12–20–24; 8:45 am] 

BILLING CODE P 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1026 

Truth in Lending Act (Regulation Z) 

Adjustment to Asset-Size Exemption 

Threshold 

AGENCY: Consumer Financial Protection 

Bureau. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Consumer Financial 

Protection Bureau (CFPB) is amending 

the official commentary to its 

Regulation Z in order to make annual 

adjustments to the asset-size thresholds 

exempting certain creditors from the 

requirement to establish an escrow 

account for a higher-priced mortgage 

loan (HPML). The exemption threshold 

for creditors and their affiliates that 

regularly extended covered transactions 

secured by first liens is adjusted to 

$2.717 billion and the exemption 

threshold for certain insured depository 

institutions and insured credit unions 

with assets of $10 billion or less is 

adjusted to $12.179 billion. 


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Federal Register / Vol. 89, No. 246 / Monday, December 23, 2024 / Rules and Regulations 104399 

1 78 FR 4726 (Jan. 22, 2013). 

2See 12 CFR 1026.35(b)(2)(iii)(C). 

3See 80 FR 59943, 59951 (Oct. 2, 2015). The 

CFPB also issued an interim final rule in March 

2016 to revise certain provisions in Regulation Z to 

effectuate the Helping Expand Lending Practices in 

Rural Communities Act’s amendments to TILA 

(Pub. L. 114–94, sec. 89003, 129 Stat. 1312, 1800– 

01 (2015)). The rule broadened the cohort of 

creditors that may be eligible under TILA for the 

special provisions allowing origination of balloonpayment qualified mortgages and balloon-payment 

high-cost mortgages, as well as for the escrow 

exemption. See 81 FR 16074 (Mar. 25, 2016). 

4Adjusted dollar amounts throughout this final 

rule are calculated by applying the relevant 

consumer price index to the previous year’s 

unrounded dollar amount before rounding to the 

nearest million dollars. Accordingly, applying the 

rounded consumer price index figures to the 

previous year’s rounded dollar amounts may not 

add up to the total dollar amount shown. 

5Public Law 115–174, 132 Stat. 1296 (2018). 

6EGRRCPA sec. 108, 132 Stat. 1304–05; 15 U.S.C. 

1639d(c)(2). 

7 86 FR 9840 (Feb. 17, 2021). 

DATES: This rule is effective on January 

1, 2025. 

FOR FURTHER INFORMATION CONTACT: 

George Karithanom, Regulatory 

Implementation & Guidance Program 

Analyst, Office of Regulations, at (202) 

435–7700 or at: https://reginquiries.

consumerfinance.gov. If you require this 

document in an alternative electronic 

format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 129D of the Truth in Lending 

Act (TILA) generally requires creditors 

to establish escrow accounts for certain 

first-lien higher-priced mortgage loan 

transactions. However, TILA section 

129D also permits the CFPB to exempt 

creditors from this higher-priced 

mortgage loan escrow requirement if 

they meet certain requirements, 

including any asset-size threshold that 

the CFPB may establish. 

In the 2013 Escrows Final Rule,1 the 

CFPB established an asset-size threshold 

of $2 billion, which would adjust 

automatically each year, based on the 

year-to-year change in the average of the 

CPI–W for each 12-month period ending 

in November, with rounding to the 

nearest million dollars.2 In 2015, the 

CFPB revised the asset-size threshold 

for small creditors and how it applies. 

The CFPB included in the calculation of 

the asset-size threshold the assets of the 

creditor’s affiliates that regularly 

extended covered transactions secured 

by first liens during the applicable 

period and added a grace period to 

allow an otherwise eligible creditor that 

exceeded the asset limit in the 

preceding calendar year (but not in the 

calendar year before the preceding year) 

to continue to operate as a small 

creditor with respect to transactions 

with applications received before April 

1 of the current calendar year.3 For 

2024, the threshold was $2.640 billion. 

During the 12-month period ending in 

November 2024, the average of the CPI– 

W increased by 2.9 percent. As a result, 

the exemption threshold is increased to 

$2.717 billion for 2025.4 Thus, if the 

creditor’s assets together with the assets 

of its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2024 are less than $2.717 

billion on December 31, 2024, and it 

meets the other requirements of 

§ 1026.35(b)(2)(iii), the creditor will be 

exempt from the escrow-accounts 

requirement for higher-priced mortgage 

loans in 2025 and will also be exempt 

from the escrow-accounts requirement 

for higher-priced mortgage loans for 

purposes of any loan consummated in 

2026 with applications received before 

April 1, 2026. The adjustment to the 

escrows asset-size exemption threshold 

also will increase the threshold for 

small-creditor portfolio and balloonpayment qualified mortgages under 

Regulation Z. The requirements for 

small-creditor portfolio qualified 

mortgages at § 1026.43(e)(5)(i)(D) 

reference the asset threshold in 

§ 1026.35(b)(2)(iii)(C). Likewise, the 

requirements for balloon-payment 

qualified mortgages at § 1026.43(f)(1)(vi) 

reference the asset threshold in 

§ 1026.35(b)(2)(iii)(C). Under 

§ 1026.32(d)(1)(ii)(C), balloon-payment 

qualified mortgages that satisfy all 

applicable criteria in § 1026.43(f)(1)(i) 

through (vi) and (f)(2), including being 

made by creditors that have (together 

with certain affiliates) total assets below 

the threshold in § 1026.35(b)(2)(iii)(C), 

are also excepted from the prohibition 

on balloon payments for high-cost 

mortgages. 

In the 2018 Economic Growth, 

Regulatory Relief, and Consumer 

Protection Act (EGRRCPA),5 Congress 

directed the CFPB to issue regulations to 

add a new exemption from TILA’s 

escrow requirement that exempts 

transactions by certain insured 

depository institutions and insured 

credit unions.6 In 2021, the CFPB issued 

a final rule implementing this 

exemption in § 1026.35(b)(2)(vi) (2021 

Escrows Rule).7 The final rule exempted 

from the Regulation Z HPML escrow 

requirement any loan made by an 

insured depository institution or 

insured credit union and secured by a 

first lien on the principal dwelling of a 

consumer if: (1) the institution has 

assets of $10 billion or less; (2) the 

institution and its affiliates originated 

1,000 or fewer loans secured by a first 

lien on a principal dwelling during the 

preceding calendar year; and (3) certain 

of the existing HPML escrow exemption 

criteria are met. In the 2021 Escrows 

Rule, the CFPB established an asset-size 

threshold of $10 billion or less in 

§ 1026.35(b)(2)(vi)(A), which will adjust 

automatically each year, based on the 

year-to-year change in the average of the 

CPI–W, not seasonally adjusted, for each 

12-month period ending in November, 

with rounding to the nearest million 

dollars. Unlike the asset threshold in 

§ 1026.35(b)(2)(iii) and the other 

thresholds in § 1026.35(b)(2)(vi), 

affiliates are not considered in 

calculating compliance with this asset 

threshold. For calendar year 2024, the 

asset threshold was $11.835 billion. 

During the 12-month period ending in 

November 2024, the average of the CPI– 

W increased by 2.9 percent. As a result, 

the exemption threshold is increased to 

$12.179 billion for 2025. Thus, a 

creditor that is an insured depository 

institution or insured credit union that 

during calendar year 2024 had assets of 

$12.179 billion or less on December 31, 

2024, satisfies this criterion for purposes 

of any loan consummated in 2025 and 

for purposes of any loan secured by a 

first lien on a principal dwelling of a 

consumer consummated in 2026 for 

which the application was received 

before April 1, 2026. 

II. Procedural Requirements 

A. Administrative Procedure Act 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if the 

CFPB finds that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest. 5 U.S.C. 553(b)(B). Pursuant to 

this final rule, comment 35(b)(2)(iii)–1 

in Regulation Z is amended to update 

the exemption threshold in 

§ 1026.35(b)(2)(iii), and comment 

35(b)(2)(vi)(A)–1 in Regulation Z is 

amended to update the exemption 

threshold in § 1026.35(b)(2)(vi). The 

amendments in this final rule are 

technical and merely apply the formulae 

previously established in Regulation Z 

for determining any adjustments to the 

exemption thresholds. For these 

reasons, the CFPB has determined that 

publishing a notice of proposed 

rulemaking and providing opportunity 

for public comment are unnecessary. 

Therefore, the amendments are adopted 

in final form. 

Section 553(d) of the APA generally 

requires publication of a final rule not 

less than 30 days before its effective 


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104400 Federal Register / Vol. 89, No. 246 / Monday, December 23, 2024 / Rules and Regulations 

8 5 U.S.C. 603(a), 604(a). 

9 44 U.S.C. 3506; 5 CFR part 1320. 

date, except (1) a substantive rule which 

grants or recognizes an exemption or 

relieves a restriction; (2) interpretive 

rules and statements of policy; or (3) as 

otherwise provided by the agency for 

good cause found and published with 

the rule. 5 U.S.C. 553(d). At a minimum, 

the CFPB has determined the 

amendments fall under the third 

exception to section 553(d). The CFPB 

finds that there is good cause to make 

the amendments effective on January 1, 

2025. The amendments in this final rule 

are technical and non-discretionary, and 

they merely apply the method 

previously established in the agency’s 

regulations for automatic adjustments to 

the threshold. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.8 As noted previously, 

the CFPB has determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this final 

rule. Accordingly, the RFA’s 

requirement relating to an initial and 

final regulatory flexibility analysis does 

not apply. 

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,9 the CFPB 

reviewed this final rule. The CFPB has 

determined that this rule does not create 

any new information collections or 

substantially revise any existing 

collections. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the CFPB will 

submit a report containing this rule and 

other required information to the United 

States Senate, the United States House 

of Representatives, and the Comptroller 

General of the United States prior to the 

rule taking effect. The Office of 

Information and Regulatory Affairs 

(OIRA) has designated this rule as not 

a ‘‘major rule’’ as defined by 5 U.S.C. 

804(2). 

List of Subjects in 12 CFR Part 1026 

Advertising, Banks, banking, 

Consumer protection, Credit, Credit 

unions, Mortgages, National banks, 

Reporting and recordkeeping 

requirements, Savings associations, 

Truth-in-lending. 

Authority and Issuance 

For the reasons set forth above, the 

CFPB amends Regulation Z, 12 CFR part 

1026, as set forth below: 

PART 1026—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for Part 1026 

continues to read as follows: 

Authority: 12 U.S.C. 2601, 2603–2605, 

2607, 2609, 2617, 3353, 5511, 5512, 5532, 

5581; 15 U.S.C. 1601 et seq. 

■ 2. In supplement I to part 1026, under 

§ 1026.35—Requirements for HigherPriced Mortgage Loans, revise 

Paragraph 35(b)(2)(iii) and Paragraph 

35(b)(2)(vi)(A) to read as follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain Home 

Mortgage Transactions 

* * * * * 

Section 1026.35—Requirements for HigherPriced Mortgage Loans 

* * * * * 

35(b)(2) Exemptions. 

* * * * * 

Paragraph 35(b)(2)(iii). 

1. Requirements for exemption. Under 

§ 1026.35(b)(2)(iii), except as provided in 

§ 1026.35(b)(2)(v), a creditor need not 

establish an escrow account for taxes and 

insurance for a higher-priced mortgage loan, 

provided the following four conditions are 

satisfied when the higher-priced mortgage 

loan is consummated: 

i. During the preceding calendar year, or 

during either of the two preceding calendar 

years if the application for the loan was 

received before April 1 of the current 

calendar year, a creditor extended a first-lien 

covered transaction, as defined in 

§ 1026.43(b)(1), secured by a property located 

in an area that is either ‘‘rural’’ or 

‘‘underserved,’’ as set forth in 

§ 1026.35(b)(2)(iv). 

A. In general, whether the rural-orunderserved test is satisfied depends on the 

creditor’s activity during the preceding 

calendar year. However, if the application for 

the loan in question was received before 

April 1 of the current calendar year, the 

creditor may instead meet the rural-orunderserved test based on its activity during 

the next-to-last calendar year. This provides 

creditors with a grace period if their activity 

meets the rural-or-underserved test (in 

§ 1026.35(b)(2)(iii)(A)) in one calendar year 

but fails to meet it in the next calendar year. 

B. A creditor meets the rural-orunderserved test for any higher-priced 

mortgage loan consummated during a 

calendar year if it extended a first-lien 

covered transaction in the preceding calendar 

year secured by a property located in a ruralor-underserved area. If the creditor does not 

meet the rural-or-underserved test in the 

preceding calendar year, the creditor meets 

this condition for a higher-priced mortgage 

loan consummated during the current 

calendar year only if the application for the 

loan was received before April 1 of the 

current calendar year and the creditor 

extended a first-lien covered transaction 

during the next-to-last calendar year that is 

secured by a property located in a rural or 

underserved area. The following examples 

are illustrative: 

1. Assume that a creditor extended during 

2016 a first-lien covered transaction that is 

secured by a property located in a rural or 

underserved area. Because the creditor 

extended a first-lien covered transaction 

during 2016 that is secured by a property 

located in a rural or underserved area, the 

creditor can meet this condition for 

exemption for any higher-priced mortgage 

loan consummated during 2017. 

2. Assume that a creditor did not extend 

during 2016 a first-lien covered transaction 

secured by a property that is located in a 

rural or underserved area. Assume further 

that the same creditor extended during 2015 

a first-lien covered transaction that is located 

in a rural or underserved area. Assume 

further that the creditor consummates a 

higher-priced mortgage loan in 2017 for 

which the application was received in 

November 2017. Because the creditor did not 

extend during 2016 a first-lien covered 

transaction secured by a property that is 

located in a rural or underserved area, and 

the application was received on or after April 

1, 2017, the creditor does not meet this 

condition for exemption. However, assume 

instead that the creditor consummates a 

higher-priced mortgage loan in 2017 based on 

an application received in February 2017. 

The creditor meets this condition for 

exemption for this loan because the 

application was received before April 1, 

2017, and the creditor extended during 2015 

a first-lien covered transaction that is located 

in a rural or underserved area. 

ii. The creditor and its affiliates together 

extended no more than 2,000 covered 

transactions, as defined in § 1026.43(b)(1), 

secured by first liens, that were sold, 

assigned, or otherwise transferred by the 

creditor or its affiliates to another person, or 

that were subject at the time of 

consummation to a commitment to be 

acquired by another person, during the 

preceding calendar year or during either of 

the two preceding calendar years if the 

application for the loan was received before 

April 1 of the current calendar year. For 

purposes of § 1026.35(b)(2)(iii)(B), a transfer 

of a first-lien covered transaction to ‘‘another 

person’’ includes a transfer by a creditor to 

its affiliate. 

A. In general, whether this condition is 

satisfied depends on the creditor’s activity 

during the preceding calendar year. However, 

if the application for the loan in question is 

received before April 1 of the current 

calendar year, the creditor may instead meet 

this condition based on activity during the 

next-to-last calendar year. This provides 

creditors with a grace period if their activity 

falls at or below the threshold in one 

calendar year but exceeds it in the next 

calendar year. 

B. For example, assume that in 2015 a 

creditor and its affiliates together extended 


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Federal Register / Vol. 89, No. 246 / Monday, December 23, 2024 / Rules and Regulations 104401 

1,500 loans that were sold, assigned, or 

otherwise transferred by the creditor or its 

affiliates to another person, or that were 

subject at the time of consummation to a 

commitment to be acquired by another 

person, and 2,500 such loans in 2016. 

Because the 2016 transaction activity exceeds 

the threshold but the 2015 transaction 

activity does not, the creditor satisfies this 

condition for exemption for a higher-priced 

mortgage loan consummated during 2017 if 

the creditor received the application for the 

loan before April 1, 2017, but does not satisfy 

this condition for a higher-priced mortgage 

loan consummated during 2017 if the 

application for the loan was received on or 

after April 1, 2017. 

C. For purposes of § 1026.35(b)(2)(iii)(B), 

extensions of first-lien covered transactions, 

during the applicable time period, by all of 

a creditor’s affiliates, as ‘‘affiliate’’ is defined 

in § 1026.32(b)(5), are counted toward the 

threshold in this section. ‘‘Affiliate’’ is 

defined in § 1026.32(b)(5) as ‘‘any company 

that controls, is controlled by, or is under 

common control with another company, as 

set forth in the Bank Holding Company Act 

of 1956 (12 U.S.C. 1841 et seq.).’’ Under the 

Bank Holding Company Act, a company has 

control over a bank or another company if it 

directly or indirectly or acting through one or 

more persons owns, controls, or has power to 

vote 25 per centum or more of any class of 

voting securities of the bank or company; it 

controls in any manner the election of a 

majority of the directors or trustees of the 

bank or company; or the Federal Reserve 

Board determines, after notice and 

opportunity for hearing, that the company 

directly or indirectly exercises a controlling 

influence over the management or policies of 

the bank or company. 12 U.S.C. 1841(a)(2). 

iii. As of the end of the preceding calendar 

year, or as of the end of either of the two 

preceding calendar years if the application 

for the loan was received before April 1 of 

the current calendar year, the creditor and its 

affiliates that regularly extended covered 

transactions secured by first liens, together, 

had total assets that are less than the 

applicable annual asset threshold. 

A. For purposes of § 1026.35(b)(2)(iii)(C), 

in addition to the creditor’s assets, only the 

assets of a creditor’s ‘‘affiliate’’ (as defined by 

§ 1026.32(b)(5)) that regularly extended 

covered transactions (as defined by 

§ 1026.43(b)(1)) secured by first liens, are 

counted toward the applicable annual asset 

threshold. See comment 35(b)(2)(iii)–1.ii.C 

for discussion of definition of ‘‘affiliate.’’ 

B. Only the assets of a creditor’s affiliate 

that regularly extended first-lien covered 

transactions during the applicable period are 

included in calculating the creditor’s assets. 

The meaning of ‘‘regularly extended’’ is 

based on the number of times a person 

extends consumer credit for purposes of the 

definition of ‘‘creditor’’ in § 1026.2(a)(17). 

Because covered transactions are 

‘‘transactions secured by a dwelling,’’ 

consistent with § 1026.2(a)(17)(v), an affiliate 

regularly extended covered transactions if it 

extended more than five covered transactions 

in a calendar year. Also consistent with 

§ 1026.2(a)(17)(v), because a covered 

transaction may be a high-cost mortgage 

subject to § 1026.32, an affiliate regularly 

extends covered transactions if, in any 12- 

month period, it extends more than one 

covered transaction that is subject to the 

requirements of § 1026.32 or one or more 

such transactions through a mortgage broker. 

Thus, if a creditor’s affiliate regularly 

extended first-lien covered transactions 

during the preceding calendar year, the 

creditor’s assets as of the end of the 

preceding calendar year, for purposes of the 

asset limit, take into account the assets of 

that affiliate. If the creditor, together with its 

affiliates that regularly extended first-lien 

covered transactions, exceeded the asset limit 

in the preceding calendar year—to be eligible 

to operate as a small creditor for transactions 

with applications received before April 1 of 

the current calendar year—the assets of the 

creditor’s affiliates that regularly extended 

covered transactions in the year before the 

preceding calendar year are included in 

calculating the creditor’s assets. 

C. If multiple creditors share ownership of 

a company that regularly extended first-lien 

covered transactions, the assets of the 

company count toward the asset limit for a 

co-owner creditor if the company is an 

‘‘affiliate,’’ as defined in § 1026.32(b)(5), of 

the co-owner creditor. Assuming the 

company is not an affiliate of the co-owner 

creditor by virtue of any other aspect of the 

definition (such as by the company and coowner creditor being under common control), 

the company’s assets are included toward the 

asset limit of the co-owner creditor only if 

the company is controlled by the co-owner 

creditor, ‘‘as set forth in the Bank Holding 

Company Act.’’ If the co-owner creditor and 

the company are affiliates (by virtue of any 

aspect of the definition), the co-owner 

creditor counts all of the company’s assets 

toward the asset limit, regardless of the coowner creditor’s ownership share. Further, 

because the co-owner and the company are 

mutual affiliates the company also would 

count all of the co-owner’s assets towards its 

own asset limit. See comment 35(b)(2)(iii)– 

1.ii.C for discussion of the definition of 

‘‘affiliate.’’ 

D. A creditor satisfies the criterion in 

§ 1026.35(b)(2)(iii)(C) for purposes of any 

higher-priced mortgage loan consummated 

during 2016, for example, if the creditor 

(together with its affiliates that regularly 

extended first-lien covered transactions) had 

total assets of less than the applicable asset 

threshold on December 31, 2015. A creditor 

that (together with its affiliates that regularly 

extended first-lien covered transactions) did 

not meet the applicable asset threshold on 

December 31, 2015, satisfies this criterion for 

a higher-priced mortgage loan consummated 

during 2016 if the application for the loan 

was received before April 1, 2016, and the 

creditor (together with its affiliates that 

regularly extended first-lien covered 

transactions) had total assets of less than the 

applicable asset threshold on December 31, 

2014. 

E. Under § 1026.35(b)(2)(iii)(C), the 

$2,000,000,000 asset threshold adjusts 

automatically each year based on the year-toyear change in the average of the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers, not seasonally adjusted, for 

each 12-month period ending in November, 

with rounding to the nearest million dollars. 

The CFPB will publish notice of the asset 

threshold each year by amending this 

comment. For calendar year 2025, the asset 

threshold is $2,717,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2024 has 

total assets of less than $2,717,000,000 on 

December 31, 2024, satisfies this criterion for 

purposes of any loan consummated in 2025 

and for purposes of any loan consummated 

in 2026 for which the application was 

received before April 1, 2026. For historical 

purposes: 

1. For calendar year 2013, the asset 

threshold was $2,000,000,000. Creditors that 

had total assets of less than $2,000,000,000 

on December 31, 2012, satisfied this criterion 

for purposes of the exemption during 2013. 

2. For calendar year 2014, the asset 

threshold was $2,028,000,000. Creditors that 

had total assets of less than $2,028,000,000 

on December 31, 2013, satisfied this criterion 

for purposes of the exemption during 2014. 

3. For calendar year 2015, the asset 

threshold was $2,060,000,000. Creditors that 

had total assets of less than $2,060,000,000 

on December 31, 2014, satisfied this criterion 

for purposes of any loan consummated in 

2015 and, if the creditor’s assets together 

with the assets of its affiliates that regularly 

extended first-lien covered transactions 

during calendar year 2014 were less than that 

amount, for purposes of any loan 

consummated in 2016 for which the 

application was received before April 1, 

2016. 

4. For calendar year 2016, the asset 

threshold was $2,052,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2015 had 

total assets of less than $2,052,000,000 on 

December 31, 2015, satisfied this criterion for 

purposes of any loan consummated in 2016 

and for purposes of any loan consummated 

in 2017 for which the application was 

received before April 1, 2017. 

5. For calendar year 2017, the asset 

threshold was $2,069,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2016 had 

total assets of less than $2,069,000,000 on 

December 31, 2016, satisfied this criterion for 

purposes of any loan consummated in 2017 

and for purposes of any loan consummated 

in 2018 for which the application was 

received before April 1, 2018. 

6. For calendar year 2018, the asset 

threshold was $2,112,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2017 had 

total assets of less than $2,112,000,000 on 

December 31, 2017, satisfied this criterion for 

purposes of any loan consummated in 2018 

and for purposes of any loan consummated 

in 2019 for which the application was 

received before April 1, 2019. 

7. For calendar year 2019, the asset 

threshold was $2,167,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 


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104402 Federal Register / Vol. 89, No. 246 / Monday, December 23, 2024 / Rules and Regulations 

transactions during calendar year 2018 had 

total assets of less than $2,167,000,000 on 

December 31, 2018, satisfied this criterion for 

purposes of any loan consummated in 2019 

and for purposes of any loan consummated 

in 2020 for which the application was 

received before April 1, 2020. 

8. For calendar year 2020, the asset 

threshold was $2,202,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2019 had 

total assets of less than $2,202,000,000 on 

December 31, 2019, satisfied this criterion for 

purposes of any loan consummated in 2020 

and for purposes of any loan consummated 

in 2021 for which the application was 

received before April 1, 2021. 

9. For calendar year 2021, the asset 

threshold was $2,230,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2020 had 

total assets of less than $2,230,000,000 on 

December 31, 2020, satisfied this criterion for 

purposes of any loan consummated in 2021 

and for purposes of any loan consummated 

in 2022 for which the application was 

received before April 1, 2022. 

10. For calendar year 2022, the asset 

threshold was $2,336,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2021 had 

total assets of less than $2,336,000,000 on 

December 31, 2021, satisfied this criterion for 

purposes of any loan consummated in 2022 

and for purposes of any loan consummated 

in 2023 for which the application was 

received before April 1, 2023. 

11. For calendar year 2023, the asset 

threshold was $2,537,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2022 had 

total assets of less than $2,537,000,000 on 

December 31, 2022, satisfied this criterion for 

purposes of any loan consummated in 2023 

and for purposes of any loan consummated 

in 2024 for which the application was 

received before April 1, 2024. 

12. For calendar year 2024, the asset 

threshold was $2,640,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2023 had 

total assets of less than $2,640,000,000 on 

December 31, 2023, satisfied this criterion for 

purposes of any loan consummated in 2024 

and for purposes of any loan consummated 

in 2025 for which the application was 

received before April 1, 2025. 

iv. The creditor and its affiliates do not 

maintain an escrow account for any mortgage 

transaction being serviced by the creditor or 

its affiliate at the time the transaction is 

consummated, except as provided in 

§ 1026.35(b)(2)(iii)(D)(1) and (2). Thus, the 

exemption applies, provided the other 

conditions of § 1026.35(b)(2)(iii) (or, if 

applicable, the conditions for the exemption 

in § 1026.35(b)(2)(vi)) are satisfied, even if 

the creditor previously maintained escrow 

accounts for mortgage loans, provided it no 

longer maintains any such accounts except as 

provided in § 1026.35(b)(2)(iii)(D)(1) and (2). 

Once a creditor or its affiliate begins 

escrowing for loans currently serviced other 

than those addressed in 

§ 1026.35(b)(2)(iii)(D)(1) and (2), however, 

the creditor and its affiliate become ineligible 

for the exemption in § 1026.35(b)(2)(iii) and 

(vi) on higher-priced mortgage loans they 

make while such escrowing continues. Thus, 

as long as a creditor (or its affiliate) services 

and maintains escrow accounts for any 

mortgage loans, other than as provided in 

§ 1026.35(b)(2)(iii)(D)(1) and (2), the creditor 

will not be eligible for the exemption for any 

higher-priced mortgage loan it may make. For 

purposes of § 1026.35(b)(2)(iii) and (vi), a 

creditor or its affiliate ‘‘maintains’’ an escrow 

account only if it services a mortgage loan for 

which an escrow account has been 

established at least through the due date of 

the second periodic payment under the terms 

of the legal obligation. 

* * * * * 

Paragraph 35(b)(2)(vi)(A). 

1. The asset threshold in 

§ 1026.35(b)(2)(vi)(A) will adjust 

automatically each year, based on the yearto-year change in the average of the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers, not seasonally 

adjusted, for each 12-month period ending in 

November, with rounding to the nearest 

million dollars. Unlike the asset threshold in 

§ 1026.35(b)(2)(iii) and the other thresholds 

in § 1026.35(b)(2)(vi), affiliates are not 

considered in calculating compliance with 

this threshold. The CFPB will publish notice 

of the asset threshold each year by amending 

this comment. For calendar year 2025, the 

asset threshold is $12,179,000,000. A creditor 

that is an insured depository institution or 

insured credit union that during calendar 

year 2024 had assets of $12,179,000,000 or 

less on December 31, 2024, satisfies this 

criterion for purposes of any loan 

consummated in 2025 and for purposes of 

any loan secured by a first lien on a principal 

dwelling of a consumer consummated in 

2026 for which the application was received 

before April 1, 2026. For historical purposes: 

1. For calendar year 2021, the asset 

threshold was $10,000,000,000. Creditors 

that had total assets of 10,000,000,000 or less 

on December 31, 2020, satisfied this criterion 

for purposes of any loan consummated in 

2021 and for purposes of any loan secured by 

a first lien on a principal dwelling of a 

consumer consummated in 2022 for which 

the application was received before April 1, 

2022. 

2. For calendar year 2022, the asset 

threshold was $10,473,000,000. Creditors 

that had total assets of $10,473,000,000 or 

less on December 31, 2021, satisfied this 

criterion for purposes of any loan 

consummated in 2022 and for purposes of 

any loan secured by a first lien on a principal 

dwelling of a consumer consummated in 

2023 for which the application was received 

before April 1, 2023. 

3. For calendar year 2023, the asset 

threshold was $11,374,000,000. A creditor 

that is an insured depository institution or 

insured credit union that during calendar 

year 2022 had assets of $11,374,000,000 or 

less on December 31, 2022, satisfied this 

criterion for purposes of any loan 

consummated in 2023 and for purposes of 

any loan secured by a first lien on a principal 

dwelling of a consumer consummated in 

2024 for which the application was received 

before April 1, 2024. 

4. For calendar year 2024, the asset 

threshold is $11,835,000,000. A creditor that 

is an insured depository institution or 

insured credit union that during calendar 

year 2023 had assets of $11,835,000,000 or 

less on December 31, 2023, satisfied this 

criterion for purposes of any loan 

consummated in 2024 and for purposes of 

any loan secured by a first lien on a principal 

dwelling of a consumer consummated in 

2025 for which the application was received 

before April 1, 2025. 

* * * * * 

Brian Shearer, 

Assistant Director, Office of Policy Planning 

and Strategy, Consumer Financial Protection 

Bureau. 

[FR Doc. 2024–30653 Filed 12–20–24; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2024–2104; Airspace 

Docket No. 23–ANM–38] 

RIN 2120–AA66 

Establishment of Class E Airspace; 

Austin Airport, Austin, NV 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This action establishes Class 

E airspace extending upward from 700 

feet above the surface at Austin Airport, 

Austin, NV. The airport is transitioning 

from visual flight rules (VFR) to 

instrument flight rules (IFR), and these 

actions support the safety and 

management of IFR operations at the 

airport. 

DATES: Effective date 0901 UTC, 

February 20, 2025. The Director of the 

Federal Register approves this 

incorporation by reference action under 

1 CFR part 51, subject to the annual 

revision of FAA Order JO 7400.11 and 

publication of conforming amendments. 

ADDRESSES: A copy of the Notice of 

Proposed Rulemaking (NPRM), all 

comments received, this final rule, and 

all background material may be viewed 

online at www.regulations.gov using the 

FAA Docket number. Electronic 

retrieval help and guidelines are 

available on the website. It is available 

24 hours each day, 365 days each year. 

FAA Order JO 7400.11J, Airspace 

Designations and Reporting Points, and 


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